26 YO young professional- wants actionable investing advice
Discussion
Hello, I am a 26 year old young professional- who has no prior investing experience.
I have taken the time to read about crypto currency's. However, I feel for a newb, they are highly volatile.
I would be grateful, to have some actionable advice, on where is a good place to start investing (baring in mind: I have limited disposable income ATM).
Thanks
Tom
I have taken the time to read about crypto currency's. However, I feel for a newb, they are highly volatile.
I would be grateful, to have some actionable advice, on where is a good place to start investing (baring in mind: I have limited disposable income ATM).
Thanks
Tom
Thope1991 said:
Hello, I am a 26 year old young professional- who has no prior investing experience.
I have taken the time to read about crypto currency's. However, I feel for a newb, they are highly volatile.
I would be grateful, to have some actionable advice, on where is a good place to start investing (baring in mind: I have limited disposable income ATM).
Thanks
Tom
With a long (5+ years) investment horizon, opening an ISA to invest in a Global equity tracker fund that you could make a monthly contribution into, would be a good starting point.I have taken the time to read about crypto currency's. However, I feel for a newb, they are highly volatile.
I would be grateful, to have some actionable advice, on where is a good place to start investing (baring in mind: I have limited disposable income ATM).
Thanks
Tom
Make sure you have a contingency fund in case you need short-term access to cash.
If you think you will want to buy a property at some point, then there are various ISAs which are designed to help you save for a deposit which provide significant government bonuses to increase your funds.
Edited by sidicks on Sunday 1st April 11:59
bogie said:
+1I've just bought copies of this book for my two sons, who are about the same age as the OP.
Blatter said:
bogie said:
+1I've just bought copies of this book for my two sons, who are about the same age as the OP.
I'm halfway through this book after seeing all the recommendations for it on this forum, and it's fantastic! Wish I'd read it years ago.
If it's disposable income that isn't being used to overpay the pension or debts, then 100% equity funds with a splash of ultra high risk asian stocks/funds.
The rule is to be risky while you're young then move to bonds when you're older. If you see the next bitcoin / london property market - invest.
I'm in my early 30s and pull in about 5k net a month and invest about half. 50% goes in the generous £20k pa ISA allowance via 100% global equity trackers, the rest in things like crowd funding and pre-december bitcoin.
The rule is to be risky while you're young then move to bonds when you're older. If you see the next bitcoin / london property market - invest.
I'm in my early 30s and pull in about 5k net a month and invest about half. 50% goes in the generous £20k pa ISA allowance via 100% global equity trackers, the rest in things like crowd funding and pre-december bitcoin.
In the same way that you can't out-train a bad diet, you can't out invest over-spending. There's a massive truth in the law of diminishing returns (basically, you might buy a new 911 and it'll be great and exciting for a few months, then you get used to it and begin to take it for granted: it's then very bad value for money).
As your income increases the natural tendency is for your spending to increase at the same rate or faster. Been there, done/still doing that.
However, the real killer comes with the fact that most of us are really bad at taking backward steps in material terms - once you have a nice new BMW 5 series, £750k house (with £500k mortgage) and kids at private school you find it really hard to unwind the position, even if you realise that it's not worth the stress and extra work of earning enough to support it. Everyday sloppiness (another meal out, not looking at the price of what you're buying etc etc) creeps in and £'000s evaporate away.
Investment returns won't make you rich, but consistent long term investing of your surplus cash from good budgeting can. Aged 26 you can take a 20+ year view. Crypto-b
ks is pure gambling. Buy a flat and take a lodger. Buy another, rent the first out and pay down the mortgages. Then refinance to buy a third (while also saving into a shares based ISA)... meanwhile chase each promotion and get to earning a salary big enough to allow decent savings.
Hmm, I'm 44 and could also take a 20+ year view and seem not to be following any of the advice just given. Doh!!
As your income increases the natural tendency is for your spending to increase at the same rate or faster. Been there, done/still doing that.
However, the real killer comes with the fact that most of us are really bad at taking backward steps in material terms - once you have a nice new BMW 5 series, £750k house (with £500k mortgage) and kids at private school you find it really hard to unwind the position, even if you realise that it's not worth the stress and extra work of earning enough to support it. Everyday sloppiness (another meal out, not looking at the price of what you're buying etc etc) creeps in and £'000s evaporate away.
Investment returns won't make you rich, but consistent long term investing of your surplus cash from good budgeting can. Aged 26 you can take a 20+ year view. Crypto-b
ks is pure gambling. Buy a flat and take a lodger. Buy another, rent the first out and pay down the mortgages. Then refinance to buy a third (while also saving into a shares based ISA)... meanwhile chase each promotion and get to earning a salary big enough to allow decent savings. Hmm, I'm 44 and could also take a 20+ year view and seem not to be following any of the advice just given. Doh!!
That seems really good advice, I wish I could turn back the clock in someways - at 35 I could ‘just’ take a 20 year view I suppose.
Property is something I have been considering, more for the benefit of my daughter who at present is only 7 but figure in 10 years time things are going to be a whole lot harder for her.
Was talking to a friend who loved his family back to London from Somerset and his two girls got into a public girls school, as you would expect in Richmond even though it was public there were what ‘seemed’ a lot of high flying people with vast sums of money.
However one of the mums whom their girls became friendly with confided in them that their mortgage was £8k a MONTH alone and they were days away from the bank knocking on the door.
There’s another thread I was chipping in with on here about moving up the housing ladder and getting caught up in the wheel of going bigger all the time.
An interesting post to read, thanks for sharing.
Si
Property is something I have been considering, more for the benefit of my daughter who at present is only 7 but figure in 10 years time things are going to be a whole lot harder for her.
Was talking to a friend who loved his family back to London from Somerset and his two girls got into a public girls school, as you would expect in Richmond even though it was public there were what ‘seemed’ a lot of high flying people with vast sums of money.
However one of the mums whom their girls became friendly with confided in them that their mortgage was £8k a MONTH alone and they were days away from the bank knocking on the door.
There’s another thread I was chipping in with on here about moving up the housing ladder and getting caught up in the wheel of going bigger all the time.
An interesting post to read, thanks for sharing.
Si
SiT said:
...
Property is something I have been considering, more for the benefit of my daughter who at present is only 7 but figure in 10 years time things are going to be a whole lot harder for her.
Was talking to a friend who loved his family back to London from Somerset and his two girls got into a public girls school, as you would expect in Richmond even though it was public there were what ‘seemed’ a lot of high flying people with vast sums of money.
....
I think you mean state school?Property is something I have been considering, more for the benefit of my daughter who at present is only 7 but figure in 10 years time things are going to be a whole lot harder for her.
Was talking to a friend who loved his family back to London from Somerset and his two girls got into a public girls school, as you would expect in Richmond even though it was public there were what ‘seemed’ a lot of high flying people with vast sums of money.
....
On the buying houses for your kids thing, I know a few people who did that 20yrs ago which of course have been a fantastic investments. I just can't see anything like that happening again, but who knows.
Fatlad1973 said:
In the same way that you can't out-train a bad diet, you can't out invest over-spending. There's a massive truth in the law of diminishing returns (basically, you might buy a new 911 and it'll be great and exciting for a few months, then you get used to it and begin to take it for granted: it's then very bad value for money).
As your income increases the natural tendency is for your spending to increase at the same rate or faster. Been there, done/still doing that.
However, the real killer comes with the fact that most of us are really bad at taking backward steps in material terms - once you have a nice new BMW 5 series, £750k house (with £500k mortgage) and kids at private school you find it really hard to unwind the position, even if you realise that it's not worth the stress and extra work of earning enough to support it. Everyday sloppiness (another meal out, not looking at the price of what you're buying etc etc) creeps in and £'000s evaporate away.
Investment returns won't make you rich, but consistent long term investing of your surplus cash from good budgeting can. Aged 26 you can take a 20+ year view. Crypto-bks is pure gambling. Buy a flat and take a lodger. Buy another, rent the first out and pay down the mortgages. Then refinance to buy a third (while also saving into a shares based ISA)... meanwhile chase each promotion and get to earning a salary big enough to allow decent savings.
Hmm, I'm 44 and could also take a 20+ year view and seem not to be following any of the advice just given. Doh!!
This x1000.As your income increases the natural tendency is for your spending to increase at the same rate or faster. Been there, done/still doing that.
However, the real killer comes with the fact that most of us are really bad at taking backward steps in material terms - once you have a nice new BMW 5 series, £750k house (with £500k mortgage) and kids at private school you find it really hard to unwind the position, even if you realise that it's not worth the stress and extra work of earning enough to support it. Everyday sloppiness (another meal out, not looking at the price of what you're buying etc etc) creeps in and £'000s evaporate away.
Investment returns won't make you rich, but consistent long term investing of your surplus cash from good budgeting can. Aged 26 you can take a 20+ year view. Crypto-b
ks is pure gambling. Buy a flat and take a lodger. Buy another, rent the first out and pay down the mortgages. Then refinance to buy a third (while also saving into a shares based ISA)... meanwhile chase each promotion and get to earning a salary big enough to allow decent savings. Hmm, I'm 44 and could also take a 20+ year view and seem not to be following any of the advice just given. Doh!!
Fatlad1973 said:
In the same way that you can't out-train a bad diet, you can't out invest over-spending. There's a massive truth in the law of diminishing returns (basically, you might buy a new 911 and it'll be great and exciting for a few months, then you get used to it and begin to take it for granted: it's then very bad value for money).
As your income increases the natural tendency is for your spending to increase at the same rate or faster. Been there, done/still doing that.
However, the real killer comes with the fact that most of us are really bad at taking backward steps in material terms - once you have a nice new BMW 5 series, £750k house (with £500k mortgage) and kids at private school you find it really hard to unwind the position, even if you realise that it's not worth the stress and extra work of earning enough to support it. Everyday sloppiness (another meal out, not looking at the price of what you're buying etc etc) creeps in and £'000s evaporate away.
Investment returns won't make you rich, but consistent long term investing of your surplus cash from good budgeting can. Aged 26 you can take a 20+ year view. Crypto-bks is pure gambling. Buy a flat and take a lodger. Buy another, rent the first out and pay down the mortgages. Then refinance to buy a third (while also saving into a shares based ISA)... meanwhile chase each promotion and get to earning a salary big enough to allow decent savings.
Hmm, I'm 44 and could also take a 20+ year view and seem not to be following any of the advice just given. Doh!!
Really good comment that you can’t out-invest overspending. A good one to live by As your income increases the natural tendency is for your spending to increase at the same rate or faster. Been there, done/still doing that.
However, the real killer comes with the fact that most of us are really bad at taking backward steps in material terms - once you have a nice new BMW 5 series, £750k house (with £500k mortgage) and kids at private school you find it really hard to unwind the position, even if you realise that it's not worth the stress and extra work of earning enough to support it. Everyday sloppiness (another meal out, not looking at the price of what you're buying etc etc) creeps in and £'000s evaporate away.
Investment returns won't make you rich, but consistent long term investing of your surplus cash from good budgeting can. Aged 26 you can take a 20+ year view. Crypto-b
ks is pure gambling. Buy a flat and take a lodger. Buy another, rent the first out and pay down the mortgages. Then refinance to buy a third (while also saving into a shares based ISA)... meanwhile chase each promotion and get to earning a salary big enough to allow decent savings. Hmm, I'm 44 and could also take a 20+ year view and seem not to be following any of the advice just given. Doh!!
I also wanted to say thanks for the advice on here too. I'm 27, with a mortgage and just about to have paid off my credit cards after a lot of hard work, budgeting and not be afraid to say no to doing things with friends and colleagues.
I will have some 'extra cash' that was paying off the credit cards that after getting to page 56 (iphone kindle app) of the recommended book on here in about 12 hours will be going towards starting to do some investing I think. Again as the book said it will be starting low at the moment at around £300 a month but will let you know how i get on.
I will have some 'extra cash' that was paying off the credit cards that after getting to page 56 (iphone kindle app) of the recommended book on here in about 12 hours will be going towards starting to do some investing I think. Again as the book said it will be starting low at the moment at around £300 a month but will let you know how i get on.
Fatlad1973 said:
In the same way that you can't out-train a bad diet, you can't out invest over-spending. There's a massive truth in the law of diminishing returns (basically, you might buy a new 911 and it'll be great and exciting for a few months, then you get used to it and begin to take it for granted: it's then very bad value for money).
As your income increases the natural tendency is for your spending to increase at the same rate or faster. Been there, done/still doing that.
However, the real killer comes with the fact that most of us are really bad at taking backward steps in material terms - once you have a nice new BMW 5 series, £750k house (with £500k mortgage) and kids at private school you find it really hard to unwind the position, even if you realise that it's not worth the stress and extra work of earning enough to support it. Everyday sloppiness (another meal out, not looking at the price of what you're buying etc etc) creeps in and £'000s evaporate away.
Investment returns won't make you rich, but consistent long term investing of your surplus cash from good budgeting can. Aged 26 you can take a 20+ year view. Crypto-bks is pure gambling. Buy a flat and take a lodger. Buy another, rent the first out and pay down the mortgages. Then refinance to buy a third (while also saving into a shares based ISA)... meanwhile chase each promotion and get to earning a salary big enough to allow decent savings.
Hmm, I'm 44 and could also take a 20+ year view and seem not to be following any of the advice just given. Doh!!
Fantastic comment. One of the biggest problems for many people is that they get used to certain luxuries - the big house (or, at least, one with a large mortgage relative to income), the nice car, interesting holidays. And all the time their salary is going up to cope.As your income increases the natural tendency is for your spending to increase at the same rate or faster. Been there, done/still doing that.
However, the real killer comes with the fact that most of us are really bad at taking backward steps in material terms - once you have a nice new BMW 5 series, £750k house (with £500k mortgage) and kids at private school you find it really hard to unwind the position, even if you realise that it's not worth the stress and extra work of earning enough to support it. Everyday sloppiness (another meal out, not looking at the price of what you're buying etc etc) creeps in and £'000s evaporate away.
Investment returns won't make you rich, but consistent long term investing of your surplus cash from good budgeting can. Aged 26 you can take a 20+ year view. Crypto-b
ks is pure gambling. Buy a flat and take a lodger. Buy another, rent the first out and pay down the mortgages. Then refinance to buy a third (while also saving into a shares based ISA)... meanwhile chase each promotion and get to earning a salary big enough to allow decent savings. Hmm, I'm 44 and could also take a 20+ year view and seem not to be following any of the advice just given. Doh!!
Then they hit their 30s/40s and pay rises are harder to come by - they have hit peak earnings and might even start to decline a little. And that's when the kids start becoming more expensive (holiday for a family of four during school holidays vs a couple going on holiday out of peak season).
Much better to always underspend (and invest the excess) when you have that excess as it will stand you in good stead when you no longer have that excess.
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